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tv   [untitled]    October 8, 2011 9:31am-10:01am EDT

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criticised for lacking organization proves it's far from chaotic and in it for the long haul. the wall street protests come up next again with max and stacey as they take a shot at the world's major money sharks in the kaiser report. times are wild on the cousin report the war continues in financial war we called it we predicted it now we're in it stays here max kaiser yes the financial war is being played out in not only the propaganda being perpetrated by the mainstream financial media but also in prices that's the important thing to look at here first i want to show you a cartoon from the chattanooga times free press by clay bennett and the title the cartoon is economic trends yet pitchforks up eight and three quarters and torches
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that seven and a half yes the war plays out on the big board max dissent is as we've been saying on the show for many many months and we've been talking about for years you need to monetize dissent and you need to get it higher represented as a price because it's a price propaganda so you need to price your dissent first and then get the price higher i know you occupy wall street people can wrap your mind around this just open your mind and think yes and one of the elements of this why pitchforks the price is going up and soaring on the big board there is as president obama had famously said to the bankers i'm the only thing that stands between you and the pitchforks but the fact is that there has been no justice no known none of these bankers have been delivered to justice and so it ends up being pitchforks and beheading so i don't understand why in a country that's so eager to execute people like down in the state of texas they
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they kill hundreds of people down there for trivial crimes why are they so shy about going after bankers who are committing unbelievably horrid wretched financial crimes of rape and terror surely there are. chair or a lethal injection or getting played for them now let's look at how again this war is fought in prices bull's bust out in final hour dow is up three hundred seventy seven points from low on bank reversal so markets soared suddenly in the last half hour and apparently the cause according to zero had is f t causes massive short squeeze with mother of all end of day rumors well the end of the day we were it was yet another potential bailout for europe but again it was a rumor and if you actually read past the headline on the f.t. apparently it was like well this is these are just discussions there is no real plan it's because obviously for the ninety nine percent of
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americans who are not directly tied to larceny on wall street the number that they would want to see go up is the number of jobs the fact that you have all these millions of americans rooting for stocks to go up which only benefit a few guys on wall street is absurd and it just shows you the propaganda is brilliant that higher prices at the end of the day somehow are good for us this is an amazing triumph of propaganda in the twenty first century time prices to a pavlovian response amongst the population yeah and again it's war and this is being fought intentionally the see these are intentional moves as they have been said it was a massive short squeeze so they were trying to destroy anybody that would bet against the markets yes there are professional had fund managers and others to take
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these enormous sell short sell short positions against the market they're fighting the government who's got their infinite credit capacity to hit them with buy programs and automated program trading so you've got one group of hedge fund a few hundred guys who have. several trillion dollars in credit versus the federal government and there are several trillion dollars in credit the people in the middle the ninety nine percent of the world that is not on either one of those two camps are suffering and asked to accept austerity measures that get worse every single day now i just spoke of people who short the market anonymous analytics acquiring information through unconventional means this is apparently anonymous hackers set up activist hedge fund this is fantastic because anonymous has picked up the ball you know we introduced the concept of marrying short sales and market activity with activism and boycotts if you google karma bank you'll find the
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history of this goes back to two thousand and four when back in london we had this hedge fund set up and so this is really a fantastic development for the occupy wall street campaign because it gives the occupiers some some real firepower so you go to a gun fight with a gun you don't go to a gun fight with a knife actually the f.t. interviewed somebody from the anonymous group and they referred to the fact that occupy wall street doesn't have any real fire power and they're saying the only thing that matters is the share price and this isn't why they're creating this fund which they've published a thirty eight page report on modern agriculture which is the parent one of the biggest agriculture producers in china and so they claimed that they provided evidence of one of the home calling exchanges largest the longest running frauds and then their report according to this article is prefaced with a legal list of disclaimer and unusually for an activist group states that it will
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profit from any collapse into how it is share price that's right i'm so proud of anonymous thank you guys for you know fighting the good fight they should contact reggie middleton and get his work done j.p. morgan go after j.p. morgan. they're short sells their naked short sells awfully and take that stock price down to zero profit wildly and share the goodies but imagine had they existed and released this information about all the c.d.o. for example that for years nobody knew other than the bankers themselves who had packaged these fought fraudulent securities only they had the advantage of being able to short those securities they were creating because they knew themselves as having package that that they were toxic imagine if anonymous had been able to release as they've done here the inside e-mails that these people like goldman sachs we know were referring to. deals so imagine how they were they released those in two thousand and five when these fraudulent securities were being packaged right
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while goldman sachs was shorting the products that they themselves created knowing that they were toxic and worthless as fun run by a group like anonymous could have also been selling short the c.d.o. and other toxic products but the profits that were generated in the anonymous had fun could have been distributed to building up the occupy wall street campaign around the world and to go to war with the wall street terrorists so they have the potential to make billions and billions of dollars in a hedge fund like this this is an untapped market and there's very little correlation the problem that's what industry right now is that everything is correlated with everything else so everyone's making the exact same bet apple computer for example is one of the biggest holdings in over one hundred eighty hedge funds they're making the exact same bet there's nobody doing something different except now you've got a major player they should make billions and billions of dollars what they do with the profits it's obvious where the profits are go feed indian people have been viciously attacked by coca-cola feed workers in colombia who are murdered by
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coca-cola they should do stuff and be counter capitalist reverse capitalists again so anonymous will be vilified for this just as alessio astonied was vilified for not being too big to fail trader. now look at this headline which won't get any attention and shock from the likes of fox and friends meet the texan investor who made millions from the credit crunch and now he's betting europe will go down the drain so first he made money on the subprime mortgage crisis because he believed as the subprime market collapse that the financial crisis was being hidden by rich western governments so because of this he's now buying credit default swaps some places like greece and he'll make hundreds of thousands of dollars if greece defaults now he's attacking these countries with these credit default swaps he doesn't own their debt he's just betting against them. is he vilified no no because
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he knows how to play the game e he pays off politicians he like in the murdoch enterprise totally corrupt he he will pay off the tories with cameron and us more completely corrupt so therefore his marauding in the markets and making money by shorting stocks arkan's is considered a necessary looper attempt for markets whereas resto shammy who simply is doing something exact same thing but on a smaller scale he's like a home version of a financial terrorist he's held up as being oh my god this guy is absolutely detrimental to our operating on to me and he should be vilified but he's just a low low playing low level punk this guy is a full fledged global financial terrorist mccarron who endures this type of looting but puts kid salute a bottle of milk in jail he's been shown not to be completely deployed to this and you know let me just quickly aside that again with the anonymous hedge fund the billions and billions of profits that they make obviously if they buy physical
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silver with that it would jack the price up to sixty seventy eighty ninety hundred dollars an ounce which of course would benefit everybody and could take down j.p. morgan because i want to bring up this this and not this texas investor is kyle bass kyle bass is the one that ended up collapsing bear stearns which was handed to a p. morgan which was then delivered all of those shorts on the silver market so kyle bass remember he was the one that was speaking to c.m.t. c. and told them that he started the rumor that he couldn't get the pay off when they cut his credit default swap on bear stearns but in fact the next morning it was paid off so he's inside manipulating markets he's a financial terrorist causing human misery death and deprivation but cameron and obama are on their knees telling him he's the god that they worship and meanwhile want to expose that some low level people are doing the same thing oh my god well can we survive with those yeah if you're not taking die. banks in order to hand
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them to j.p. morgan for pennies on the dollar then you're the bad guy now i want to look at some more you brought up precious metals some more propaganda against the population pairs from the f.t. it's an opinion piece gold bugs be where the bubble is finally bursting this is from a professor at boston university and he says gold's recent volatility is spook ing investors and destroying demand he claims even though imports to turkey up six hundred forty four percent imports to india the biggest consumer of gold in the world up many many times over so where is this guy he says pulling fabricated idea out of his bottom well again it's its price propaganda he is seeing a price fall as commensurate with demand fall demand for gold and silver is increasing the fact that the price is not going up is because these markets are manipulated by the financial times and people support the financial times of the people support the corrupt banking system that's the on impeachable truth and then
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a part of his propaganda is you saying that if gold is falling in a weak economy imagine if it eventually moves from chaos to prosperity how bad gold will do exactly but as we said at the top of the show the price of pitchforks isn't going higher in the world we see around us in the occupy wall street in the occupy oz and the occupy melbourne the occupy los angeles and the occupy the city of london you are that's the price of pitchforks justice has not been delivered so there will be no prosperity this guy just doesn't get it yes of occupy wall street it's fun tells everybody in the world and all these cities who are protesting to start buying silver physical so over a one ounce at a time and they themselves are buying it billions of dollars at a time due to their short sales and naked short sales of corrupt institutions like j.p. morgan and other banks and other companies that are committing financial fraud and financial terrorism the. the total dynamic of the global market shifts away from
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the people getting a b. is that they then become the rulers against the class of people that are doing the abusing say sara thanks so much for being on the kaiser report thank you max don't go away much more coming your way so stay right there. discoveries. communicate with the want to. test yourself and become free.
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see what nature can give you. i welcome back to the kaiser report i'm max kaiser time now to go to london and speak with professor steve keen steve is the author of deep bonking economics which has just been rereleased as debunking economics to the naked emperor dethrone steve kean welcome to the kaiser report thank you max good to be here and good to be holding the line you edition of the barking economics all right steve kane you've been in europe for the past week while extreme volatility has returned again to the sovereign debt and equity markets is this a classic minsky moment type collapse action if so tell us what it meant the moment is well it's actually
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a moment doesn't diminish just as i think it's more low this is more like because of the minsky millennium because this process began with the debt bubble that took fifty or sixty years to build up in america and will take something like about ten at least ten to fifteen maybe twenty is still on wind if we go through the same sort of in one policy is the politicians a cowardly following by you know following the advice of the morons whose theories i write this book about me a classical economists so it's a it's a permanent shock in the moment comes out of saying that they can be a period of extreme rational exuberance providing through the economy what minsky called euphoric expectations leading capitalists in general but in particular ponzi scheme. people who make money by gambling on rising us a process to take out more and more debt and get to the stage with a such a level of debt laden on society that no one wants to take anymore at one point and when the debt stops growing you go from a period of growing debt boosting demand to reducing debt cutting demand and that
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period of de leverage ing is the beginning of a minsky moment because we've got such a huge level of private debt run up in this speculative bubble in america particularly in the last twenty years by those that really going back sixty years it could take one or two decades for that level of debt to be driven down side of it it's a miniscule any i'm right and basically what we're seeing now is the revelation that this debt fueled so-called growth is nothing more than an enormous ponzi scheme now steve cain i'm going to be in ireland next month at the kill going omics best of all and i'm sharing the stage with jeffrey sachs was all the fun who's got to be considered a classic economist from academia somebody who in your book i'm sure would qualify someone to deep bunk what should i bring to the stage when i'm on stage or jeffrey sachs your thoughts what you could ask him is what is the what does he think about what happened in russia because jeffrey sachs was a major proponent of what they call the shock therapy approach for russia that said
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that the way to go the transition from a socialist system to a capitalist system was to do it as quickly as possible in the belief that the market would instantly jump from wherever it was in the social system to an oss equilibrium of the market economy and the regional plan that he pushed through was supposed to take a five hundred day period to go from socialism to free market capitalism now in fact that wasn't fostered off and i made it one hundred fifty dies in russia just recently speaking with people at the university humanities there and one of the head of the department told me that a large number of his colleagues dog in that transition because what happened was the actual change from. socialist process to free market process was set in one day i think he said it was the first of january of the second of january and so they woke up to find their wages hadn't changed their process it increased by a factor of four das jeffrey sachs about that because he certainly you know he was a proponent of that he's now chinese she spots and he joined in with bono and gone
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you know a socially progressive eccentric setter and again given credit for that but. honestly discuss what happened what advice to give praja the transition in russia and what happened because of the transition and wanted to move to equilibrium or chaos ok so jeffrey sachs in russia with fault theories resulted in deaths people died because of his hearing. orthodoxies and economics which have been proven to be a shambolic now on wall street there is the occupy wall street protest because a lot of the bankers on wall street who are creating these financially engineered products that are based on equally faulty economic assumptions are also causing death and disease all over the world in the united states and around the world what should be the punishment for economics and wall street traders and bankers who end
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up visa v. their policies killing people one of my favorite cartoons is the wily. and at one stage there's a cartoon with a bunch of people being dragged down you know obviously in a hill leading down towards the ultimate punishment and there's the devil's sending over a lecture theatre saying the eternal economic seminar and one person and one one one because of a god it's worse than i thought i think i should listen to their own stuff interminably in the sensory deprivation trying to. get them to pay back for the nonsense they've unleashed the crazy thing is one of the wall street tried is knew there was scamming there's plenty of fraud as you know in the finance sector the academic economists who push this stuff out actually jen. speaking believe it and actually think they're doing good and i have a little analogy that i have included in the second edition of the book from one of my old school teachers a brilliant philosopher as it turned out he lit us have free discussions in what was supposed to be religion classes and we were discussing
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a particular politician back on about it saying is all seventeen years old and one of the other students in the class said that about this guy but at least his sincere on the whole. we caught a bit you see sincere and the teacher who normally shut off and didn't so i would popped up and said don't overwrite sincerity the most dangerous people who post no meat in your life is the is the maniacs and seal each i shit down the right with the next trying to chop your head off in the belief it'll be good for you well that's kind of eventually what they have done then naivety has caused this crosses yeah and this is a been played out recently with the mainstream media in america covering the the wall street occupation and other campaigns going on that while the bankers are sincere in their attempts to do something and this is resulted in a huge mismatch and even crypto conservatives like jon stewart can't seem to wrap their mind around the fact that they're dealing with quite an opposing force of destruction well let's move back to europe for
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a second your thoughts on the european financial stability fund even the proposed revised expanded and leveraged version. has is going to save europe steve cain is going to say that by bearing in on the late may yet mode dead i mean you do need a government sector stimulating the economy when you go to downturn in the private sector but this whole thing is trying to solve a debt crisis debt this is going to be paid back to go to come back to michael hudson's classic rise in this whole point debts that company replied won't be replied what we need is not more and more debt rescheduling and and leverage ing of current levels of rescue and yet more debt the embattled country has to pry we need to abolish large slabs of the state that should never have been issued in the first place and it's the for. an answer to the should weigh the pie and not the ordinary person and grace all the rest of europe well yeah i mean look the the debt that was created by these economists and bankers following corrupt theories and their own larcenous stick ends are creating the austerity measures that are causing poverty
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disease famine and death so they're killing people literally there's a there's an axiomatic relationship more debt equals more death you know we need something like that this we still want the phase where we're denying that there is a long term process people still think i'm going to come out of this thing you know and it's just a case of this this package will get us ivers thank god that's over let's move back to the next that's the same as if you're the head and thirty one and thirty two in the great depression it took them a long time to realize hill this is serious we're stuck here and it took the turning point in the political approach to the process and then on in thirty's which got us out of the great depression to some extent the one force of the second world war by the major role there was a commission now as the core a commission where an absolutely rabid prosecutor went for the head of j.p. morgan and by simply got him and completely crippled the political power of the bankers at that stage and set the scene for the for the new deal in revolt speech about a fickle be throwing the bankers out of the palace we need a political shift like that in many ways i think is occupy wall street movement
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which i now see is replicated in my own country with occupy. melbourne and a few others taking up around the world that public movement may be what's needed to shift the politicians and stop them being in the pockets of the bankers and put the bank has behind bars instead because if it's all a few of them end up there the same behave is going to continue yeah i'm on a mailing list with dylan ratigan. he and others bill black and they're all debating what the demands should be and even if they should make any demands but steve king would you say that a simple demanded be we need a new book or a commission yes absolutely we need somebody with the. ols running it on bill because while these nomination day bill did a brilliant job with the sightings of the commission he put hundreds of people behind bars who belonged there for that behavior in the months process that was a drop in the water compared to what happened since then with the the dot com bubble and the subprime but nobody's going to live right now there's absolutely
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bucket loads of fraud in the entire system and you need somebody with the balls to psych them on and put people behind bars over this and start breaking down the political power that wall street still has yet bill black needs to get medieval and jamie diamond. all right let's spend the next a minute or start talking about australia you famously have been calling for the australian real estate market top out and start of decline of all your work steve came this is the one prediction that has a lot of the others but it seems as though you're being vindicated if you bring us up to date the i was right i made that call about house process falling forty percent over ten to fifteen years in about i think olga's to two thousand and seven and in oak in october of two thousand and seven the government brought in what i prefer to call the first time vendor's boost where rather than giving the first time seven thousand australian dollars as a deposit towards the time they gave them fourteen thousand and twenty one thousand
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they bought a new place and sites like victoria weapon after an extra fifteen thousand dollars so in the case of victoria depending on where you bought you can get a thirty five thousand dollars check from the government simply for saying you're going to go and buy a house now that restock at the bubble which had started to burst at the time so i went on that coal house process would fall in about five percent on an annual basis from that point once the. kicked in about one hundred billion dollars more borrowed money was injected into the market and house process rose about another right ten percent across the country now that so often the mention to turn around and it's finally started turning around and of course the success of the first time vendors boost was by dragging people who were going to buy. in two thousand and ten and two thousand and eleven into two thousand and eight and two thousand and nine so it actually kicks itself and it's on at the end of it there are just simply all that many blogs out there anymore you're starting to get the flow of new demand being list in the flow when you supply the processor too high discard people in any way so that overhang which is the pro used to
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a forward and housing market is well and truly established now and we're seeing process turning down in every market except apparently sydney which is still slightly positive over on an annual basis but certainly perth and brisbane ironically the two capitals of the two major mining sites have seen quite so substantial falls in process already and i'm in him as well and really growing right steve cain that's all the time we have thanks for being on the kaiser report you're welcome but again all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guests deve team pick up his new book debunking economics the new expanded version if you want to send me an e-mail please do so at kaiser reported r.t. t.v. dot ru until next time this is max guys are saying.
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a war dragging on for a decade the u.s. led invasion of afghanistan and houses the ten year mark with the taliban defeat nowhere in sight and human cost that's rising faster than ever. meanwhile in the u.k. and enough is enough to save protesters calling for a speedy troop withdrawal i gather in london to mark the afghan wars tenth anniversary. and to corporate sentiment spreads fast across the u.s. the occupy wall street movement was criticized for lacking organization that proves it's far from chaotic and is in it for the long haul. plus artes closeup team visit the land once rich with brown to states where prominent russian poets and princes made their homes and meets people who now struggle to preserve what made about bygone splendor.